A Human Resource Management Approach

STRATEGIC COMPENSATION

Prepared by David OakesChapter 10Legally Required Benefits

Legally RequiredBenefits Social Security

Workers Compensation

Family & Medical Leave

Social Security Programs Unemployment insurance

Old Age, Survivor, and Disability Insurance (OASDI)

Medicare

Unemployment Insurance Unemployment not workers fault States administer within federal guidelines States send money to federal government Agriculture & domestic workers are exempt

Unemployment Eligibility Did not leave job voluntarily Able and available for work Actively seeking work Has not refused suitable work Not off due to labor dispute Not fired for gross work violations

OASDI Old Age, Survivor, and Disability Insurance Enacted in 1935, for retirement Survivors insurance added 1939 Disability insurance added 1965

OASDI Exemptions Civilian federal workers Railroad employees (before 1984) State & local government workers Children Under 21, if working for a parent Unless over 18, working in the familys business

OASDI Retirement Requirements Earn 40 quarters of credit, or Be employed for 10 years Be age 62 for partial benefits Be age 65 for full benefits In 2022, be age 67

OASDI Survivors Benefits Based on Eligibility Status & Relationship Deceased was fully insured Dependent, unmarried children Widow(er) age 60 + Dependent parent age 62 +

Disability Benefits Worker was fully insured Meets Social Security work requirements Varies according to age & disability Disability must last 1 year or be terminal 6 Months waiting period

Medicare For citizens age 65 + Provided insurance coverage for Hospitalization Convalescent care Major doctor bills Prescription drug costs

Medicare Options Part A Part B Medigap Medicare Advantage (Part C) Prescription Drug Program

Medicare Part A Covers inpatient & outpatient hospital care & services Provides unlimited in-home care Participants Social security beneficiaries Retirees Voluntary enrollees Disabled Employer & employee financed

Medicare Part B Voluntary supplementary medical insurance $110 deductible, then covers 80% Financed by government & enrollees Participants Part A enrollees Those on social security Railroad retirees

Part B Coverage Diagnosis, therapy, surgery Consultations Medical services & supplies Medications not self administered Outpatient hospital services Home health services

Medigap Supplements Parts A & B Through private insurers 10 standardized choices Medicare Select Option Lower premiums for fewer choices Not offered in all states

Medicare Advantage Medicare + Choice, Part C Established through Balanced Budget Act of 1997 Alternative to Parts A & B Options Fee-for-services Managed care plans Medical savings accounts

Medicare Prescription Drug Program Part D Covers 75% after $250 deductible up to $2,250 Cover 95% after $3,600 out-of-pocket Employer subsidy for similar plan

Workers Compensation State compulsory disability laws Enacted in 1911 Employer liable regardless of fault Maritime, federal civilian, domestic agriculture, & small business workers not covered

Objectives Provide income & medical benefits Reduce litigation Relieve charities financial drain Eliminate legal fees & time Encourage employer safety Promote accident study & avoidance

NCSWCL Obligations Take initiative in administration Review performance & adjust Inform workers & insure payment Inform providers & employers Resolve disputes Adjudicate unresolved claims

Workers Compensation Claims Injury

Occupational disease

Death

Workers Compensation Benefits Medical services Disability income Death benefits Rehabilitative services

FMLA Benefits 12 weeks of unpaid leave for Birth, adoption, foster care Serious family medical problems Workers serious medical problem Retention of Seniority Health insurance coverage Credit for previous service Accrued retirement benefits